Iowan Lawmakers Propose Legalisation Of Online Gambling.

With the Unlawful Internet Gambling Enforcement Act (UIGEA) coming into law within the next few months, a great deal is being done by various sectors within American society to challenge the UIGEA’s full integration into legislation. The latest news is that Iowa may try to legalise online gambling before the UIGEA reaches its full impact.

So, can online gambling be legalised in Iowa? Certain lawmakers in the state are ascertaining whether it will be possible for them to decriminalise internet gambling. If Iowa becomes the first state to legalise online gambling, then they will be the first American state to allow internet betting, but only on an in-state basis.

As it stands, at the beginning of 2010, it has been estimated that around 50,000 of Iowans participate regularly at online casinos, but this is currently illegal and if caught many will face severe penalties, likely to be in the form of a hefty fine. There are still many online casinos that, due to the payment methods they offer, are able to accept American gamblers; this means that there are still a great deal of Americans who are either losing money (which the government will not accept as they consider this a massive problem for the general US economy and its monopoly on the world stage) or winning money (which again the government are not accepting of due to the fact that its illegality means that the money cannot be taxed as it is not recognised in law as taxable).

Following on from these two perceived problems, the lawmakers in Iowa want to legalise online gambling in order that they can regulate trade, while at the same time ensuring that the online gambling remains in state, thus avoiding the haemorrhaging of money outside the American economy in general and the local economy in particular.  

 "Here's an opportunity for $11.5 million a year for an activity that's already going on in the state where Iowans have exposed themselves to significant risks," says Doug Struyk, a Republican State Representative from Council Bluffs.

Online gambling in the state of Iowa, or indeed any US state, is a gamble in itself, because it is illegal and they run the risk of being caught. The majority of such gamblers participate in online poker tournaments, which are often run offshore and are largely unregulated. However, Struyk and other lawmakers believe that there needs to be legal channels that such people can use to bet as they clearly get enjoyment from it and are not likely to stop, by making online gambling legal in the state, they also allow the government to claim their share of the pot- a winner all round by any account. Plus, the fact that poker tournaments are not illegal in the states many casinos also adds an air of hypocrisy to the online ban as it is clearly not a matter of morals, but a matter of finance and who can get their hands on the tax revenues generated. Anyone claiming a moral edge to the banning of online gambling in the US is both deluded and ignorant of the facts, or disguising their true intentions behind an argument that is more easily upheld.

"You actually have to go to one of the 17 casinos in Iowa. You have to make a cash of debit card deposit," Struyk argues.

Some of the Iowan casinos, such as Rhythm City Casino and Isle of Capri allow people to make deposits anywhere from $50 to $500 at a time. Then they are able to play online by accessing the casinos website and playing with the money they have deposited. This scheme means that players are able to spend money with online gambling, but the money remains in the state and the economy is enhanced, rather than damaged by the losses that people incur gambling.

"It's good in that aspect and the money that the RDA, who holds the licenses, pump into the local, is economy is great too," Davenport, Alderman Bill Boom says.

Nonetheless, Alderman Doom and other citizens of Iowa remain concerned that the legalisation of online gambling would exacerbate the problem of gambling addiction, particularly for those people already in its grip.

Anne Gindelsparger says, "I think there would have to definitely be a lot of regulation with something like that. It would definitely lend itself to addiction more easily than something like a riverboat casino".

In addition, Ellie Bonis adds, "I do know somebody who has developed an online gambling problem, doesn't need to leave the house to go to the casino. It's so easy to just click, click, click and then there's a problem".

Additionally, the form of online gambling proposed by Iowan lawmakers is less simple than that of true internet gambling, for a start, the online accounts would only be accessible from Iowan IP addresses. Moreover, if the player wins money, then they would have to go physically to the casino to collect their winnings; the simplicity of playing from the comfort of your living room is removed somewhat by these new proposals. And, in all probability, many of the 50,000 people who gamble illegally will probably keep up their activities because of the ease at which they can play and the fact that they CAN play without ever having to move. If the new proposals are passed then the changes could be seen as early as the beginning of next year (2011).

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